prudential uganda - profile

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Prudential Africa : Introduction

September 2015

2

Executive summary

• US$750bn assets under management

• US$64bn market capitalisation

• US$54bn of gross written premiums in 2014

Continuity in

Business

Financial

Strength

Long Term

commitment

to Africa

• We have acquired three businesses in Africa:

− Express Life in December 2013, now Prudential Life Insurance Ghana

− Shield Assurance of Kenya in September 2014, now Prudential Life Assurance Kenya

− Goldstar Life of Uganda in June 2015, now Prudential Assurance Uganda

• We have invested heavily for decades to build the most successful life franchise in Asia and we are doing the same in Africa

We intend to continue to expand our footprint across the region

• 166 continuous years of financial service

• About 24 million insurance customers across the world

• Employs over 27,600 people

3

Agenda

Introduction to Prudential

Prudential in Africa

Uganda – Macroeconomics

Prudential Uganda – Offerings

Supporting our Communities

4

Growth

Capital

Overview166 year history of honouring claims

Prudential was

founded on 30 May

1848 in Hatton Garden,

London

1848 1998

Prudential

celebrates

150 years

of financial

service

1912

Prudential honoured claims for

over 300 lives lost in the tragedy

2013-151914–1945

Wartime

During World War I, Prudential paid

230,000 war claims. By the outbreak

World War II, Prudential had more

than 28 million policyholders

In total, Prudential paid over £10

million in claims during the two wars

Prudential

Corporation Asia

was formed to

develop existing

and new

businesses in Asia

1994

Prudential marks

its entry into

Africa with

acquisitions in

Ghana, Kenya

and Uganda

The ‘Man from the

Pru’, was launched

as an advertising

image to re-establish

the identity of the

agent in the post-war

world

1949

Paid out claims

worth c.$2m post

acquisition of

Shield Assurance

in Kenya

5

OverviewGeographic footprint

63%

37%

Prudential footprint % of GDP growth1, 2014-2019

Global growth $13.9 trillionPrudential 24m life customers

1 IMF World Economic Outlook – October 2014

Rest of World

Prudential footprint

6

1. Amongst foreign insurers

2. Measured by FUM. Source: Investment Management Association, data as at end of December 2013

3. Data as of 31 December 2013

4. based on 9M 2013 sales (APE)

Exchange Rate used: 1£ = $1.6490 (as of 31 December 2013)

Leading global life insurance franchise Businesses across Asia, US, UK and Africa

Key Products• Regular premium

• Unit linked / A&H

• Single premium

• Variable Annuities

(VA)

• Single premium

• Participating /

Annuities

• Unit Trusts• Endowment

• Funeral plan

Distribution• 458,000 Agents

• Bancassurance• Broker Dealers

• Independent

Financial Advisors

(IFAs)

• Independent

Financial

Advisors (IFAs)

• ~800 Agents

• Brokers

• Mobile phones

Market

• Present in 13

countries

• 12.5m customers

• No. 1 insurer in 7

markets

• 4m customers

• No. 1 provider of

VA in the US

• 7m customers

• No. 1 Annuity

provider4

• No. 1 With-Profits

onshore bonds4

• 350,000 customers

• Second largest

retail fund manager

in the UK2

• Present in Ghana,

Kenya and Uganda

• Over 1m

customers

Life Reserves US$53bn US$177bn US$242bn • US$9m

External FUM3 US$30bn US$208bn

Asia US UK Africa

Prudential Africa

Holdings Limited

7

975

1,663

973

636

4,247

3,4253,264

1,0361,484 1,283

2,393 2,778

4,054

2006 2007 2008 2009 2010 2011 2012 2013 2014

Asia US UKIO M&G

Key financials Strategy to deliver “Growth and Cash”

1,278

804

1,877

2,376

5,246

4,150

3,321

4,864

1,749 1,9232,048

2,3783,002

2006 2007 2008 2009 2010 2011 2012 2013 2014

Asia US UKIO M&G

1,913

1,143

445

3,501

2,360

1,8821,4161,263

1,118

3,428

2,5292,949

2006 2007 2008 2009 2010 2011 2012 2013 2014

Asia US UK

New business profit1, US$m IFRS operating profit2, US$m

+15%+15%

CAGR CAGR

Underlying free surplus generation3, US$m

+19%

CAGR

29.6 31.1 32.7

41.5

48.1

55.360.8

28.2

39.3

2006 2007 2008 2009 2010 2011 2012 2013 2014

Dividend, cents/share

+10%

CAGR

1 Excluding Japan and Taiwan agency

2 In 2010, the Group amended the presentation of IFRS operating profit for its US insurance operations to remove the net equity hedge accounting effect (incorporating related amortisation of deferred acquisition costs) and include it in short-term fluctuations. The prior period comparatives for 2009 and

2008 have been amended accordingly. Excluding Taiwan agency

2008 – 2011 Comparatives adjusted for accounting policy improvements for deferred acquisition costs. The total IFRS operating profit before tax includes unallocated sum of $(936m)

3 Life and asset management businesses, net of new business strain. Excluding Taiwan business; 2006 figure not available.

UKIO stands for UK Insurance Operations

Exchange Rate used: US$1 = £0.6073 (2014 Avg)

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280%

258% 252% 248%

226% 222% 221%212%

183% 182% 182%174%

141%

Pru

den

tial

ZIG

ING

Man

ulif

eC

hin

a Li

fe

L&G

AXA

Aeg

onS

tand

ard

Life

Allianz

Avi

vaP

ing

An

Gen

eral

i

Financial strengthOne of the highest solvency ratios in the sector

1. Rating and financial strength as at 1st April 2014

2. Pertains to LT Senior debt

Source : Prudential Website; Company Q4 and Q3 Reports

S&P Moody’s Fitch

Credit Rating1

Prudential plc2 A+ A2 A

Financial Strength1

Prudential Assurance (UK)

AA Aa2 AA

Jackson National Life (US)

AA A1 AA

Solvency Ratio FY 2013

9

Market outperformance on shareholder returns

100

185198 199

290

434

100117 126

109

147

201

2009 2010 2011 2012 2013 2014

Prudential – value of £100 invested on 1 January 2009

International Insurers* – value of £100 invested on 1 January 2009

Total Shareholder’s Return (£)

Note: * International insurers (currently 18) are peers which are similar to Prudential in size, geographic footprint and products. The shareholder

returns are as on Jan 1 of the respective year

Source: Prudential Annual Report

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Expertise in emerging marketsCreated an industry leading franchise in Asia

685

925

1,340

1,719

1,933 1,907

2,178

2,445

2,812

3,204

3,684

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

199

308 313 324

466

766

995

1,291

1,521 1,602

1,877

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Prudential Asia New Business Sales1,2,

US$m

Asia IFRS operating profit2,3, US$m

1. A measure of new business activity that is calculated as the sum of annualised regular premiums from new business plus 10 percent of single premiums on new business written during the period

2. Life and Eastspring Investments. Net of development costs. 2006 onwards, excludes Taiwan agency and Japan; Pre-2006, as reported

3. 2012 operating profit includes a one-off gain of US$84m arising on sale of Group’s interest in China Life Insurance Company of Taiwan

Exchange Rate used: US$1 = £0.6073 (2014 Avg)

+18%

CAGR

+25%

CAGR

11

Note: APE based on 9M 2014. Market share data based on latest available information

1. Amongst foreign/JV players; 2. Amongst private players

Source: Based on formal (Competitors’ results release, local regulators & insurance associations) and informal (industry exchange) market share data

Market leading platform in AsiaLeader in Asia with wide footprint

India

China

Hong Kong

Thailand

Indonesia

Malaysia

Singapore

Korea

Vietnam Philippines

Taiwan

China: 5% of APE

Market Share: 12%1

Rank: 21

Vietnam: 3% of APE

Market Share: 25%

Rank: 1

India: 5% of APE

Market Share: 19%2

Rank: 12

Korea: 5% of APE

Market Share: 1%

Rank: 18

Thailand: 4% of APE

Market Share: 4%

Rank: 8

Indonesia: 17% of APE

Market Share: 27%

Rank: 1

Malaysia: 9% of APE

Market Share: 21%

Rank: 1

Singapore: 17% of APE

Market Share: 24%

Rank: 1

Philippines: 2% of APE

Market Share: 14%

Rank: 2

Hong Kong: 27% of APE

Market Share: 13%

Rank: 3

Cambodia: 0.1% of APE

Market Share: 68%

Rank: 1

Cambodia

Taiwan: 6% of APE

Market Share: 1%

Rank: 13

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Agenda






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Building the African business using the same long-term approach that worked in Asia

• Africa represents a significant long-term opportunity for developing life business– By 2100 over half the world’s population will be in Africa

– Middle class to grow by factor of 3 over next 20 years

– Working-age population set to double over next 30 years

• In December 2013 Prudential acquired a life business in Ghana – Small business, with strong local management team; Prudential Ghana already a top-10 business

• In September 2014 Prudential entered the Kenyan life insurance market

• In June 2015 Prudential entered the Ugandan Life market

with a 10 year agreement with a leading local bank

14

Uganda becomes most recent Prudential Africa market June 2015

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Agenda






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Uganda well positioned for rapid growth of life industry

1 Source: IMF

* Rest of East Africa comprises of Burundi, Ethiopia, Eritrea, Rwanda, Tanzania and Kenya

• Uganda’s economic and demographic

environment well facilitate rapid growth

of life insurance

– Life insurance penetration level of about

0.1% presents a huge opportunity

– Growth prospects further fuelled by :

o Strong GDP growth forecasts (8.0%

CAGR for 2013-2018)1

o Young population, 59% are under the

age of 20

o Growing middle class and urban

population 0 2,000,000 4,000,000 6,000,000 8,000,000

0-4

05-09

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75-79

80-84

85-89

90+

Ag

e g

rou

p

Demographics, 2015

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Uganda among the least penetrated life markets…providing significant opportunities of growth

12.7%

5.4%

4.0%

2.1%

1.2%

0.5% 0.5% 0.3% 0.2% 0.1% 0.1% 0.1%

SouthAfrica

Namibia Mauritius Botswana Kenya Malawi Ghana Zambia Nigeria Tanzania Uganda Ethiopia

Global average 3.5%

Life insurance penetration in Africa, 2013

* Rest of East Africa comprises of Burundi, Ethiopia, Eritrea, Rwanda, Tanzania and Kenya

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Agenda






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Prudential aims to serve the long-term financial needs of Ugandan people

• We provide protection and savings opportunities to our customers

• We are dedicated to developing innovative and affordable products that meet your

changing needs – whether that is saving for your children’s education or protecting your

loved ones against the financial effects of illness or bereavement

• With Prudential, you can be sure we will be there when you need us. We have been

honouring claims for over 166 years.

• Pru LifeSaver

• Pru LifePlus

o Endowment Assurance Plan

o Education Plan

• Pru CashBuilder

• Whole Life

• Prudential Uganda Group Plans

o Group Life (Disability, Critical Illness,

Funeral Expenses)

o Group Credit Life

o Group Life Extension to Group Personal

Accident

Group LifeIndividual Life

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Group LifeEmployer benefit scheme

• Features

– An employee benefit scheme wholly funded by the employer

– The plan provides payment in the event of death of an employee from both accidental and natural

causes whilst in service

• Benefits

– The benefit is expressed as a multiple of the annual salary, for example 3 times the employee’s

annual salary

• Add-on Benefits

– The following benefits can be added to the Group Life policy:

o Group Disability – compensates the staff member in the event of total and permanent disability

o Critical Illness – pays out benefit to the staff member in the event of contracting any of these critical illnesses for

the first time:

− Heart attack, cancer, stroke, kidney transplant (recipient)

o Funeral Expenses – provides funeral expenses on untimely death of the employee

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Group Life Extension to Group Personal Accident/Workers Comp.

• Features

– A Group Life plan offered to existing members of a Group Personal Accident

scheme to extend cover to include death from natural causes since Group

Personal Accident only covers either death or injury resulting from accidents.

– Just like Group Life, the plan is wholly funded by the employer

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Group Credit Life

• Features

– Product provides both death and total permanent disability cover to a borrower

– Policy is taken out by either a Bank or Microfinance Institution as collateral security

• Benefits

– We pay off the outstanding loan balance in the event of the borrower’s death or total permanent

disability

• Add-on Benefits

– Cover may be extended to cover defaults subject to agreed limits and premium rates

23

Agenda






24

CSR in AfricaCase Study: Prudential Scholarship Programme, Ghana

Objective

• Support low-income, but academically able students with an award enabling them to complete senior high school

Reach

• 500 Senior High School students over 5 years will be awarded scholarships. At least 300 of these will be awarded to girls

Execution

• Local NGO Plan Ghana will ensure adherence to agreed criteria

• Input sought from relevant local education administrators (Ghana Education Service) and industry bodies (Ghana’s National Association of Teachers)

• Prudential Ghana’s employees will be involved in mentoring the students to support their academic achievement

25

CSR in AfricaCase Study: Prudential Actuarial Support System

Kwame Nkrumah University of Science and Technology, Ghana

University of Cape Coast, Ghana

Prudential Actuarial Support System (PASS)

Objective

• To promote development of actuarial capacity by rewarding excellence in actuarial science in Ghana

Reach

• The scheme will support the top 10 graduating students in Actuarial Science – 5 students at the Kwame Nkrumah University of Science and Technology and 5 students at Cape Coast University

Execution

• The scheme will commence in 2014, run for three years and then undergo a review process

• Each student will be awarded the Cedi equivalent of US$500 and the reimbursement of exam fees and study notes for two years after graduation

• Top students will also be offered apprenticeships at Prudential

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CSR in AfricaCase Study: Prudential Education Support System, Kenya

Objective

• Support 228 students over a five year period enabling them to complete their secondary school education

Reach

• Provide scholarships to 100 students in partnership with Kenya Education Fund

• Partner with Plan Kenya to also support 128 students with a scholarship programme

Execution

• Kenya Education Fund

– The scholarship will be for four years and will be split equally between girls/boys and Nomadic/non-Nomadic students

– Prudential Kenya’s employees will also be involved in mentoring the students to support their academic achievement

• Plan Kenya

– The scholarship split will be 60% girls and 40% boys, which mirrors our programme with Plan Ghana

Prudential’s Partners in Education Support

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Questions?

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